H.B. No. 249 proposes amendments to the Texas Tax Code that focus on the appraisal value of real property for ad valorem tax purposes. The bill modifies Section 1.12(d) to clarify the appraisal ratio for properties under Section 23.23, removing references to Section 23.231, and repeals a previous amendment to Section 1.12(d) that was set to take effect in 2027. Additionally, the heading of Section 23.23 is updated to indicate it applies to "real property" rather than just "residence homestead." New subsections are introduced to outline conditions under which appraisal offices can increase the appraised value of real property, including a cap on increases and provisions for property transfers between spouses. The bill also defines "new improvements" and clarifies that limitations on appraised value apply to all real property, including manufactured homes.

Furthermore, H.B. No. 249 repeals several provisions related to the circuit breaker limitation on appraised value and adjusts the appraisal process, including the information required in notices sent to property owners. The bill establishes that it will apply only to property appraisals for tax years beginning on or after January 1, 2026, contingent upon the approval of a related constitutional amendment by voters. This amendment seeks to authorize the legislature to limit the maximum appraised value of real property for ad valorem tax purposes to 105 percent or more of the appraised value from the previous tax year. If the amendment is not approved, the provisions of the bill will have no effect, reflecting a significant shift in how property taxes are assessed in Texas.

Statutes affected:
Introduced: Tax Code 1.12, Tax Code 23.23 (Tax Code 1, Tax Code 23)